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EU adds bioenergy to 2040 climate goal

  • Market: Biofuels, Biomass
  • 12/09/25

Sustainable bioenergy has been added to EU member states' draft legislation as one of the technologies supporting the bloc's 2040 greenhouse gas (GHG) reduction target. Environment ministers are expected to discuss the revised draft on 18 September.

The European Commission's original proposal did not list bioenergy among the enabling technologies, which included renewables, nuclear, energy efficiency, energy storage, carbon capture and storage/usage, carbon removals, geothermal and hydro power. It also referenced "all other" current and future net-zero energy technologies.

If sustainable bioenergy remains in the final legislative text, it could influence future policy design. Industry group Bioenergy Europe supports the proposed 90pc net GHG reduction target for 2040 and has called for permanent carbon removals to be recognised in the EU emissions trading system (ETS), along with lighter regulation for small biomass emitters.

Industry sources say the member states' draft marks a shift from the commission's earlier stance, which anticipated declining bioenergy demand after 2040 due to electrification. Until then, the Commission expects liquid biofuels to play a significant role in aviation and maritime transport.

Once adopted, the 2040 target will require detailed implementing legislation, including rules on solid biomass use and fuels. These could intersect with the ongoing review of the bloc's effective phase-out of internal combustion engines by 2035.

The reference to "sustainable bioenergy" should extend to carbon-neutral fuels such as renewable ethanol, said David Carpintero, director general of European renewable ethanol association ePURE. The group claims renewable ethanol achieved a 79pc GHG reduction in 2024 compared with fossil fuels. "We'll definitely get to carbon neutrality," Carpintero said, stressing the importance of lifecycle emissions analysis.

More concerning for industry is political opposition to the 2040 target within the European Parliament. The parliamentary draftsman, Ondrej Knotek — a member of the far-right Patriots for Europe group — has called for the 90pc reduction goal to be scrapped. Ongoing political divisions also cast uncertainty over the timeline for final agreement among member states.

Other proposals under discussion include the possibility of storing EU-generated CO2 outside the bloc..


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14/11/25

Cop: 10 countries pledge to align transport with 1.5ºC

Cop: 10 countries pledge to align transport with 1.5ºC

Belem, 14 November (Argus) — A group of 10 countries led by Chile called for a global effort to cut energy demand from the transport sector by 25pc by 2035, aligning it with the Paris Agreement goal of limiting global warming to 1.5°C above pre-industrial levels. The coalition was formed at the UN Cop 30 climate summit, which is underway in Belem, northern Brazil. Brazil, Colombia, Costa Rica, the Dominican Republic, Honduras, Norway, Portugal, Slovenia and Spain are the other signatory countries so far. "We are committed to making transport a key pillar of climate action, agreeing a shared framework for resilient and low emissions transport systems", Chile's transport minister Carlos Abogabir told journalists at Cop 30. Cutting energy demand from transport — the second-largest emitting sector — allows for "a clear measurable direction towards a net zero scenario in the transport sector in 2050", he added. Chile is a natural leader for the coalition as it is a global leader in efforts to electrify its public transport fleet. The country's capital Santiago is the city with most electric buses outside of China, Abogabir said. It had around 3,000 electric buses in 2024, according to a report by Agora Verkehrswende, a non-governmental organisation focused on climate neutrality in transport. But it will have 4,400 by March, Abogabir added. The coalition will now work to create a roadmap to reach the pledge's goal and measure progress for future Cops, according to Slocat, a global partnership that promotes sustainable, low-carbon transport. Sustainable fuels, renewable sources Although the pledge will heavily rely on electrification, it also calls on countries to shift one-third of energy powering transport to sustainable biofuels and renewable sources. Brazil is the second-biggest biofuel producer globally, trailing only behind the US. But it will consider any route that both decarbonizes its fleet and drives national industry, Brazilian minister of cities Jader Barbalho Filho told Argus , mentioning specifically liquid nitrogen and biomethane. Including existing and expected projects, Brazil could have 2.4mn m³/d of biomethane capacity by 2027, data from hydrocarbons regulator ANP show. The shift to sustainable biofuels and renewables sources plays well into Brazil's Belem 4x pledge , which calls for a global effort to quadruple global output and use of sustainable fuels by 2035, Filho added. "The Chilean government looked for us [to present the transport pledge] exactly because we already have [Belem 4x]", he said. The Belem 4x pledge now has 23 country signatories, Cop 30 chief executive Ana Toni said today. By Lucas Parolin Send comments and request more information at feedback@argusmedia.com Copyright © 2025. Argus Media group . All rights reserved.

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Australia’s Jet Zero, Townsville port sign biofuels MoU


14/11/25
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14/11/25

Australia’s Jet Zero, Townsville port sign biofuels MoU

Sydney, 14 November (Argus) — Australian bioenergy developer Jet Zero and the Port of Townsville have signed an initial agreement to assess the feasibility of developing new biofuel storage and blending infrastructure at Queensland's third-largest port. The biofuels firm and port operator will explore design and construction options for a potential liquid storage facility to support the movement, blending, import and export of sustainable fuels from Jet Zero's nearby proposed Project Ulysses , Jet Zero said on 13 November. Project Ulysses will produce 113mn litres/yr sustainable aviation fuel (SAF) and renewable diesel (RD) using the alcohol-to-jet method at north Queensland's Townsville State Development Area, 2km south of the Port of Townsville. Jet Zero recently completed front-end engineering and design with alcohol-to-jet technology provider LanzaJet. The project could produce one-sixth of the domestic airline industry's 2030 SAF commitment, but a date for first output has not been disclosed. Project Ulysses aims to meet mandated and voluntary demand for SAF and RD in the aviation and marine sectors, and the Port of Townsville will play a critical role in facilitating trade and supporting regional industry growth, the companies said. By Grace Dudley Send comments and request more information at feedback@argusmedia.com Copyright © 2025. Argus Media group . All rights reserved.

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API pitches revamp of biofuel exemptions: Update


13/11/25
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13/11/25

API pitches revamp of biofuel exemptions: Update

Updates throughout New York, 13 November (Argus) — The American Petroleum Institute (API) is pitching the White House and biofuel groups on a total revamp of how the US exempts oil companies from a program that requires biofuel blending, according to three people familiar with the lobbying group's work. API recently withdrew its support for a bill that would authorize 15pc ethanol gasoline (E15) year-round on its frustrations with changes to biofuel policy this year that oil companies see as too friendly to farmers and to some small refining competitors. The US for instance recently granted small oil refiners generous hardship waivers from a biofuel blend mandate and proposed requiring larger companies to blend more biofuels in future years as an offset. API's pitch — shared at a White House meeting this week — would require that companies seeking program exemptions must show that economic hardship stems directly from the biofuel program, a more stringent requirement than today, according to two of the people familiar with the group's work. Exemptions would also be restricted to companies with limited collective refining capacity, cutting off larger enterprises like Delek and Par Pacific that own multiple small units that qualify now. Smaller companies like Ergon and Kern Oil could still request waivers, but the total pool of potentially exempted gas and diesel volumes would be far lower. The oil group then wants the US to prohibit hiking other oil companies' blend requirements to offset those exemptions, a tougher sell to biofuel and crop groups that fear unchecked program waivers curb demand for their products. Larger merchant refiners that do not qualify for small refinery relief have also long pushed lawmakers for updates to the program and would not benefit from this proposal. API's idea is to pass legislation pairing updates to the small refinery exemption program with year-round authorization of E15, generally prohibited in the summer without emergency waivers because of summertime fuel volatility restrictions that do not apply to typical 10pc ethanol gasoline. That's a top priority for ethanol companies, otherwise at risk from an increasingly efficient and electric light-duty vehicle fleet. Congress last year nearly passed narrower E15 legislation, which API supported at the time but no longer does without more changes. Courts have struck down past attempts by federal officials to authorize E15 without emergency declarations and to drastically restrict biofuel exemption eligibility, likely limiting what President Donald Trump's administration can do without new legislation. API made the pitch to the White House this week, the sources familiar with API's work said. The White House is hosting other groups for meetings on fuel policy, including another one on Thursday on E15 that featured biofuel groups. Officials from across Trump's administration, including the US Department of Agriculture, have attended. "Administration officials hosted listening sessions with biofuel groups, agriculture and oil refiners to discuss their proposals on year-round E15", a source familiar with the matter said. It is not clear that biofuel advocates, insistent that the Trump administration entirely offset the impact of recent refinery exemptions, are open to the attempted compromise. The ethanol group Renewable Fuels Association declined to comment on E15 talks. Regulatory tweaks to boost ethanol supply would also do little on their own to help producers of other biofuels like renewable diesel. API declined to elaborate on what was discussed at any meetings with the Trump administration. "We appreciate the administration's leadership in bringing stakeholders together to advance a practical solution on E15 and small refinery exemption reform", API said. "We look forward to continuing to work together to advance a framework that supports fuel choice, strengthens the refining and agricultural sectors, and helps ensure a stable, reliable supply for American consumers." Under the Renewable Fuel Standard, the US requires oil refiners and importers to annually blend different types of biofuels or buy credits from those that do. The administration is late setting new biofuel quotas for 2026 but is expected to do so in the coming months, kicking off a flurry of last-minute lobbying about future volumes, exemptions and potential cuts to credits from foreign fuels and feedstocks. By Cole Martin Send comments and request more information at feedback@argusmedia.com Copyright © 2025. Argus Media group . All rights reserved.

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API pitches revamp of small refinery biofuel waivers


13/11/25
News
13/11/25

API pitches revamp of small refinery biofuel waivers

New York, 13 November (Argus) — The American Petroleum Institute (API) is pitching the White House and biofuel groups on a total revamp of how the US exempts oil companies from a program that requires biofuel blending, according to three people familiar with the lobbying group's work. The API recently withdrew its support for a bill that would authorize 15pc ethanol gasoline (E15) year-round on its frustrations with changes to biofuel policy this year that oil companies see as too friendly to farmers and to some small refining competitors. The US for instance recently granted small oil refiners generous hardship waivers from a biofuel blend mandate and proposed requiring larger companies to blend more biofuels in future years as an offset. API's pitch would require that companies seeking program exemptions must show that economic hardship stems directly from the biofuel program, a more stringent requirement than today, according to two of the people familiar with the group's work. Exemptions would also be restricted to small companies with limited collective refining capacity, cutting off larger enterprises like Delek that own multiple small units that qualify today. The oil group then wants the US to prohibit hiking other oil companies' blend requirements to offset those exemptions, a tougher sell to biofuel and crop groups that fear unchecked program waivers curb demand for their products. Larger independent refiners that do not qualify for small refinery relief have also long pushed lawmakers for updates to the program and would not benefit from this deal. API's idea is to pass legislation pairing updates to the small refinery exemption program with year-round authorization of E15, generally prohibited in the summer without emergency waivers because of summertime fuel volatility restrictions that do not apply to typical 10pc ethanol gasoline. That's a top priority for ethanol companies, otherwise at risk from an increasingly efficient and electric light-duty vehicle fleet. E15 legislation nearly passed Congress last year. API made the pitch to the White House at a meeting this week, the sources familiar with API's work said. The White House is hosting other groups for meetings on fuel policy, including another one today on E15 that will feature biofuel groups. API declined to comment on any meetings with President Donald Trump's administration. "We appreciate the administration's leadership in bringing stakeholders together to advance a practical solution on E15 and small refinery exemption reform", the group said. "We look forward to continuing to work together to advance a framework that supports fuel choice, strengthens the refining and agricultural sectors, and helps ensure a stable, reliable supply for American consumers." By Cole Martin Send comments and request more information at feedback@argusmedia.com Copyright © 2025. Argus Media group . All rights reserved.

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Cop: Brazil draws R8.8bn to Climate Fund


13/11/25
News
13/11/25

Cop: Brazil draws R8.8bn to Climate Fund

Sao Paulo, 13 November (Argus) — Brazil's development bank Bndes and environmental ministry (MMA) drew R8.84bn ($1.67bn) in reimbursement resources to its Climate Fund, the bank said at the UN Cop 30 climate summit in Belem,Brazil, on Wednesday night. European banks Germany's Kreditanstalt fur Wiederaufbau, France's Agence Francaise de Developpement and Italy's Cassa Depositi e Prestiti committed to invest €1bn ($1.16bn) by 2027 through reimbursement aimed at climate financing. The Interamerican Development Bank will contribute with another $500mn for the fund in the same period. A foreign finance commission under Brazil's planning ministry and each institution must approve before the resources before signing financing agreements. Bndes's Climate Fund is a financial mechanism focused on climate actions, such as energy transition and sustainable development projects, especially for small- and medium-sized companies. New operations for forests Bndes and MMA also announced five new credit operations totaling R912mn to restore native vegetation in the Amazon rainforest, in the tropical savanna biome known as Cerrado and in the coastline Atlantic Forest. Brazilian private-owned companies focused on recovering degraded lands and promoting sustainable agriculture practices will restore over 86,000 hectare (ha), but Bndes did not specify any timeframes. Scale forest restoring company Re.green holds the largest fund, with R250mn, to restore around 19,000ha along the Amazon and the Atlantic Forest. The Climate Fund has already granted other R187mn to the firm in 2024, targeted at preventing the emission of 1.27mn metric tonnes (t)/yr of CO2 equivalent. Other projects include Brazilian investment bank BTG Pactual's ecological subsidiary Camapua, investments holding Lorinvest's forestry subsidiary Tree+, public projects developer Ibema group and investment group Patria. By João Curi Send comments and request more information at feedback@argusmedia.com Copyright © 2025. Argus Media group . All rights reserved.

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